Earnings Per Share

9 Months Ended

Sep. 30, 2015

Note 6.

Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding shares issuable upon the exercise of certain contracts to issue common stock, such as in-the-money stock options. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).

The following is a reconciliation of basic and diluted earnings per share for the periods presented in the consolidated statements of income.

Three months ended September 30,	2015		2014
(in thousands, except per share data)
Basic EPS:
Weighted average common shares outstanding		43,692		43,882
Net income		19,851		10,912
Basic EPS	$	0.45	$	0.25

Diluted EPS:
Weighted average common shares outstanding		43,692		43,882
Dilutive effect of common stock options and restricted stock		570		523
Weighted average common shares and common share equivalents		44,262		44,405
Net income		19,851		10,912
Diluted EPS	$	0.45	$	0.25

Nine months ended September 30,	2015		2014
(in thousands, except per share data)
Basic EPS:
Weighted average common shares outstanding		43,949		43,847
Net income		57,298		56,561
Basic EPS	$	1.30	$	1.29

Diluted EPS:
Weighted average common shares outstanding		43,949		43,847
Dilutive effect of common stock options and restricted stock		519		507
Weighted average common shares and common share equivalents		44,468		44,354
Net income		57,298		56,561
Diluted EPS	$	1.29	$	1.28

There were 36,360 stock options for the quarter ended September 30, 2015 and 501,843 stock options for the quarter ended September 30, 2014 that were not considered in the calculation of diluted earnings per share since the stock options’ exercise price was greater than the average market price during these periods.

There were 334,759 stock options for the nine months ended September 30, 2015 and 502,836 stock options for the nine months ended September 30, 2014 that were not considered in the calculation of diluted earnings per share since the stock options’ exercise price was greater than the average market price during these periods.